By Helia Ebrahimi, Senior City Correspondent Published: 6:00AM GMT 03 March 2010
The banks, that wrestled carry out of the commercial operation from the in isolation equity owners last summer, are believed to be deliberation a range of restructuring options together with a pre-pack. Accounts filed at Companies House exhibit that Paramount faced crippling debts to the in isolation equity backer, Silverfleet Capital, by remuneration in kind (PIK) loan notes.
These argumentative debt structures toothed wheel up outrageous amounts of seductiveness each year that unless companies are sole or refinanced can fall short them. The Paramount PIK records were worth �51.5m at the begin but were rolling up 15.5pc seductiveness annually. In 3 years, Silverfleet, that corroborated a �107m 2006 buy-out, saw the worth of the PIK fill up to some-more than �77.7m.
When the banks took carry out of the commercial operation they paid Silverfleet a favoured total for the PIKs that were afterwards cancelled. In return, the banks, together with Royal Bank of Scotland, HSBC and Barclays. took 60pc equity. However, some-more than �70m of bank debt was kept in place and it is that weight that is now being reviewed.
Any offer for a pre-pack has not been put brazen by the association itself or the advisers.
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